Southern Novelty Co. v. Economy Cone & Tube Co.

294 F. 717, 1923 U.S. Dist. LEXIS 1179
CourtDistrict Court, E.D. North Carolina
DecidedDecember 8, 1923
DocketNo. 95
StatusPublished

This text of 294 F. 717 (Southern Novelty Co. v. Economy Cone & Tube Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Novelty Co. v. Economy Cone & Tube Co., 294 F. 717, 1923 U.S. Dist. LEXIS 1179 (E.D.N.C. 1923).

Opinion

CONNOR, District Judge.

The bill, answer, evidence, and exhibits disclose the following case:

Plaintiff is a South Carolina corporation, with its principal office and factory at Hartsville, S. C. Defendant is a corporation, with its principal office and factory at Rockingham, N. C. The suit is brought under and pursuant to the provisions of section 4921, Revised Statutes, 7 Fed. Stat. Anno. (2d Ed.) 326, as amended (Comp. St. § 9467), for the infringement of letters patent No. 886,884, granted in the name of Walter F. Smith, May 5, 1908, upon an application filed December 19, 1907, covering the manufacture of paper cones for yarn-winding machines, which, by assignments, prior to the filing of the bill herein, became the property of plaintiff.

Defendant, in its answer and upon the hearing, admits that the paper cone, described in the letters patent and exhibited on the hearing, was [718]*718patentable, and that an application therefor was filed in the Patent Office at Washington, D. C., in accordance with the provisions of the statutes of the United States, December 19, 1907, and that letters patent were issued in accordance with the application, May 5, 1908, in the name of Walter F. Smith, as alleged in the bill, and that by duly executed assignments the said letters patent, with all of the rights thereto, are vested in the plaintiff. Defendant further admits that it has, prior to the filing of the bill, and is at this time, engaged in the manufacture and sale of paper cones of the same design, and in all respects similar to those described in, and covered by, said patent No. 886,884. It denies that, in the manufacture and sale of said cones, it has infringed any legal right of plaintiff in respect to said letters patent, for that it denies that plaintiff has any exclusive rights to the use of the “blanks” used in manufacture of said cones. Defendant avers that it has a perfect legal right to use “blanks” of the kind shown in the Smith patent, if it so desires, for the reason that said patent is not valid, because the patentee violated the explicit requirement of the statute, for that the “blanks” used in the manufacture of said cones were in public use, or on sale, for more than two years prior to the filing date of the application resulting in said patent, as provided by section 4886 of the Revised Statutes, 7 Federal Statutes Anno. (2d Ed.) (Comp. St. § 9430).

The statute provides that:

“Any person wlio has invented or discovered any new and useful art, machine, manufacture, or composition of any matter, or any new and useful improvements thereof, not known or used hy others in this country, before his invention or discovery thereof, and not patented or described in any printed publication in this or any foreign country, before his invention or discovery thereof, or more than two years prior to his application, and not in public use or on sale in this country for more than two years prior to his application, * * * may, upon payment of the fees required by law, and other due proceeding had, obtain a patent therefor.”

It is provided by section 4920, R. S. 7 Fed. Stat. Anno. (2d Ed.) 309 (Comp. St. § 9466), that in any action for infringement of a patent, the defendant is permitted, in his answer, having given notice thereof* for more than 30 days, to prove, on trial, that the article patented had been in public use, or on sale in this country, for more than two years before his application for a patent was filed, etc.

Upon the issue raised by the pleadings herein, it is settled that:

“The burden of proof is upon the defendant to establish this defence. The grant of letters patent is prima facie evidence that the patentee is the first inventor of the device described in the letters patent, and of its novelty. !Not only is the burden of proof to make good this defence, upon the party setting' it up, but it has been held that ‘every reasonable doubt should be resolved against him.’ ” Cantrell v. Wallick, 117 U. S. 690, 6 Sup. Ct. 970, 29 L. Ed. 1017, citing Smith v. Goodyear, Dental Vulcanite Co., 93 U. S. 486, 23 L. Ed. 952; Lehnbeuter v. Holthaus, 105 U. S. 94, 26 L. Ed. 939; Coffin v. Ogden, 18 Wall. (85 U. S.) 120, 21 L. Ed. 821.

So it is said:

“In view-of the unsatisfactory character of such testimony, arising from the forgetfulness of. witnesses, their liability to mistakes, their proneness to recollect things as the party calling them would have them recollect them. * * * Courts have not only imposed upon defendants the burden of prov[719]*719ing such devices, but have required that the proof shall be clear, satisfactory and beyond a reasonable doubt.” Barbed Wire Patent, 143 U. S. 275, 12 Sup. Ct. 443, 36 L. Ed. 154; W. W. Sly Co. v. Central Iron Works, 246 Fed. 707, 158 C. C. A. 663, and other illustrative cases.

It is further held that, when the public use is shown, the burden of proof is cast upon the patentee to establish the fact that such use was experimental. Guy v. Stein, 239 Fed. 729, 152 C. C. A. 563, and cases cited in opinion.

The principles upon which the question whether a patent is invalid by reason of prior use for two years before the filing of the application is to be decided is clearly stated in Smith & Griggs Mfg. Co. v. Sprague, 123 U. S. 249, 8 Sup. Ct. 122, 31 L. Ed. 141, in which it is said:

“It is perfectly true that a patentee cannot bo permitted to use for profit a machine which embodies a perfected invention for a period of two years or more, and then obtain a valid patent for the old machine by means of the addition of some new improvements, which, in the language of Judge Lowell, ‘were intended to benefit the patent rather than the machine.’ * * * A use by the inventor, for the purpose of testing the machine, in order by experiment to devise additional means for perfecting the success of its operation, is admissible; and where, as incident to such use, the product of its operation is disposed of by sale, such profit from its use does not change its character; but where the use is mainly for the purposes of trade and profit, and the experiment is merely incidental to that, th,e principal and not the incident must give character to the use. The thing implied as excepted out of the prohibition of the statute is a use which may be properly characterized as substantially for purposes of experiment. Where the substantial use is not for that purpose, but is otherwise public, and for more than two years prior to the application, it comes within the prohibition.”

The testimony shows clearly that the patentee, W. F. Smith, had for several years, as probably others interested in securing a cone fór use in cotton mills, been endeavoring by experiments to secure a “blank,” so cut that the cone could be perfected — that is, made ready for use— by a single operation. It is manifest that changes in the “blanks” could only be tested by experiments. Walter F. Smith, who it is conceded invented and perfected the cone, or rather the “blank,” worked in plaintiff’s cotton mill and then made the experiments. It is conceded by W. H. McCall, president of defendant company and principal witness for defendant, that Smith was a man of high character.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Coffin v. Ogden
85 U.S. 120 (Supreme Court, 1874)
Smith v. Goodyear Dental Vulcanite Co.
93 U.S. 486 (Supreme Court, 1877)
Elizabeth v. Pavement Co.
97 U.S. 126 (Supreme Court, 1878)
Lehnbeuter v. Holthaus
105 U.S. 94 (Supreme Court, 1882)
Cantrell v. Wallick
117 U.S. 689 (Supreme Court, 1886)
Smith & Griggs Manufacturing Co. v. Sprague
123 U.S. 249 (Supreme Court, 1887)
The Barbed Wire Patent
143 U.S. 275 (Supreme Court, 1892)
Guy v. Stein
239 F. 729 (Seventh Circuit, 1916)
W. W. Sly Mfg. Co. v. Central Iron Works
246 F. 707 (Seventh Circuit, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
294 F. 717, 1923 U.S. Dist. LEXIS 1179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-novelty-co-v-economy-cone-tube-co-nced-1923.